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Revealed Preference Analysis of School Choice Models

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  • Nikhil Agarwal
  • Paulo J. Somaini

Abstract

Preferences for schools are important determinants of equitable access to high-quality education, effects of expanded choice on school improvement and school choice mechanism design. Standard methods for estimating consumer preferences are not applicable in education markets because students do not always get their first choice school. This review describes recently developed methods for using rich data from a school choice mechanism to estimate student preferences. Our objectives are to present a unifying framework for these methods and to help applied researchers decide which techniques to use. After laying out methodological issues, we provide an overview of empirical results obtained using these models and discuss some open questions.

Suggested Citation

  • Nikhil Agarwal & Paulo J. Somaini, 2019. "Revealed Preference Analysis of School Choice Models," NBER Working Papers 26568, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:26568
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    References listed on IDEAS

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    1. Caroline Minter Hoxby, 2003. "School Choice and School Productivity. Could School Choice Be a Tide that Lifts All Boats?," NBER Chapters, in: The Economics of School Choice, pages 287-342, National Bureau of Economic Research, Inc.
    2. Atila Abdulkadiro─člu & Joshua D. Angrist & Yusuke Narita & Parag A. Pathak, 2017. "Research Design Meets Market Design: Using Centralized Assignment for Impact Evaluation," Econometrica, Econometric Society, vol. 85, pages 1373-1432, September.
    3. Simon Burgess & Ellen Greaves & Anna Vignoles & Deborah Wilson, 2015. "What Parents Want: School Preferences and School Choice," Economic Journal, Royal Economic Society, vol. 125(587), pages 1262-1289, September.
    4. Vaart,A. W. van der, 2000. "Asymptotic Statistics," Cambridge Books, Cambridge University Press, number 9780521784504.
    5. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387.
    6. McCulloch, Robert & Rossi, Peter E., 1994. "An exact likelihood analysis of the multinomial probit model," Journal of Econometrics, Elsevier, vol. 64(1-2), pages 207-240.
    7. Beggs, S. & Cardell, S. & Hausman, J., 1981. "Assessing the potential demand for electric cars," Journal of Econometrics, Elsevier, vol. 17(1), pages 1-19, September.
    8. Christopher Neilson & Claudia Allende & Francisco Gallego, 2019. "Approximating the Equilibrium Effects of Informed School Choice," Working Papers 628, Princeton University, Department of Economics, Industrial Relations Section..
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    More about this item

    JEL classification:

    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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